1. The contractor is an independent establishment registered with EPFO. So if he has employed employees in semi-skilled and skilled categories whose wages are less than Rs. 15,000 and who had not worked with any EPFO registered establishment or had a UAN prior to April 2016, they can benefit under this scheme. The same will apply for the organization as the Principal Employer, according to me. Please confirm.
2. Since the Government will be paying 8.33% of the contractor's contribution for 3 years, as a Principal Employer, can we choose to recover it from the contractor? What processes have to be defined by your organizations in this regard? Can anyone share their practices, views, or guidelines in this forum? Your help will be greatly appreciated.
Thank you,
Sagar Ghule
7506254580
From India, Kalyan
Acknowledge(0)
Amend(0)
32. Since the Government will be paying 8.33% of the contractor's contribution for 3 years, as a Principal Employer, can we choose to recover it from the contractor? What processes have to be defined by your organizations in this regard? Can anyone share their practices, views, or guidelines in this forum? Your help will be greatly appreciated.
Thank you,
Sagar Ghule
7506254580
From India, Kalyan
Acknowledge(0)Amend(0)
The benefit is available to the contractor itself, who has submitted their contribution in their own code. If the principal employer has enrolled the contract employees in their EPF account, then only the benefit is available to the principal.
Acknowledge(0)Amend(0)
Acknowledge(0)Amend(0)
Well noted, sir.
My query is different. We, as the Principal Employer, reimburse a particular Manday rate to the contractor which includes PF & ESIC contribution/cost. Under the PMPRY scheme, the contractor will get a refund of the 8.33% during the generation and payment of the challan amount. This will be a benefit to the contractor since we, as the Principal Employer, had paid him, and he also received a refund from EPF. My query is: can we recover the amount from the contractor, and if yes, then how? What process has to be followed?
From India, Kalyan
Acknowledge(0)Amend(0)
My query is different. We, as the Principal Employer, reimburse a particular Manday rate to the contractor which includes PF & ESIC contribution/cost. Under the PMPRY scheme, the contractor will get a refund of the 8.33% during the generation and payment of the challan amount. This will be a benefit to the contractor since we, as the Principal Employer, had paid him, and he also received a refund from EPF. My query is: can we recover the amount from the contractor, and if yes, then how? What process has to be followed?
From India, Kalyan
Acknowledge(0)Amend(0)
In simple words, the benefit is to be availed by the immediate employer who has encouraged providing fresh employment and making it covered under EPF. As the principal has no role in the direct recruitment of contract employees, the benefit will always be retained by the employer who has enrolled them in their own code.
Acknowledge(0)Amend(0)
Acknowledge(0)Amend(0)
Ok. Thanks. Noted. But some of the locations / company unit are recovering such amount which was paid by them and in respect of such employees the contractor received refund.
From India, Kalyan
Acknowledge(0)Amend(0)
From India, Kalyan
Acknowledge(0)Amend(0)
There is no such rule or norms prescribed, however if the principal and contractor both agrees upon any point, then it is between only both of them, not to be taken a rule or concept
Acknowledge(0)Amend(0)
Acknowledge(0)Amend(0)
Hi,
If there are employees whose salary is less than 15000/-, is it sufficient to stop paying 8.33% pension fund or should we provide the list to the relevant PF department? Additionally, if the salary crosses 15000/- in the meantime, will the government continue to contribute for 3 years?
Kindly advise.
From India, Bangalore
Acknowledge(0)Amend(0)
If there are employees whose salary is less than 15000/-, is it sufficient to stop paying 8.33% pension fund or should we provide the list to the relevant PF department? Additionally, if the salary crosses 15000/- in the meantime, will the government continue to contribute for 3 years?
Kindly advise.
From India, Bangalore
Acknowledge(0)Amend(0)
@Mahesh This is PMRPY post, and PMRPY scheme allows certain subsidy "after" compliance of data of new employees, it never ask the employer to stop any contribution payable.
Acknowledge(0)Amend(0)
Acknowledge(0)Amend(0)
It is clear from PMRPY scheme and the above discussion that PMRPY benefits are to be availed by the immediate employer only.
Further, please guide us on what a contractor (immediate employer) can do if the principal employer wants to recover the amount forcefully from the contractor.
From India, Delhi
Acknowledge(0)Amend(0)
Further, please guide us on what a contractor (immediate employer) can do if the principal employer wants to recover the amount forcefully from the contractor.
From India, Delhi
Acknowledge(0)Amend(0)Engage with peers to discuss and resolve work and business challenges collaboratively. Our AI-powered platform, features real-time fact-checking, peer reviews, and an extensive historical knowledge base. - Register and Log In.
Contract employee & Principal employer 2017.pdf
NOTE ON PRINCIPAL EMPLOYER TO ENGAGE CONTRACT LABOUR.pptx